Shree Renuka Sugars plans to put the final bid for Brazil’s Equipav Acucar E Alcool next week, according to reports. Equipav is one of the largest sugar companies in Brazil.
The Equipav promoters have recently announced the criteria for final bidding. In all, five parties have done due diligence on Equipav. All of them are likely to submit final bids by February 12, the report stated.
Other bidders include Noble of Hong Kong and NYSE-listed Bungee. Around mid-2009, the promoters of Equipav invited final bids, but failed to choose the winning bidder due to internal differences.
The promoters of Equipav are quoting an enterprise value, equity plus debt minus cash, of around US$1bn (Rs 4,625 crore). The equity portion of the deal would be around US$400-500mn, while the balance would be debt. Shree Renuka plans to use the money, it had raised last July, through a Rs5bn qualified institutional placement to part-finance the acquisition.